Narmada Macplast Drip Irrigation Systems Ltd Directors Report.
Narmada Macplast Drip Irrigation Systems Limited
Your Directors have pleasure in presenting the 27th Annual Report of the Company with the audited statements of accounts for the year ended 31st March, 2019.
1. FINANCIAL RESULTS:
|(Rs. In Lakhs)|
|Particulars||For the Year 2018-19||For the Year 2017-18|
|Turnover & Other Income||898.68||49.13|
|Net Profit before Depreciation & amortization||10.88||11.16|
|Net Profit /Loss Before Extra Ordinary Item||8.99||9.06|
|Net Profit for the year||6.90||4.96|
2. STATE THE COMPANYS AFFAIRS AND OPERATIONS:
Your Company has been removed from suspension status on stock exchange and presently is listed on stock exchange. The Company is engaged in business of drip irrigation system. During the year, your Company has achieved a turnover and earned other income in tune of Rs. 898.68 lakhs as compare to the turnover of Rs. 49.13 lakhs recorded for the previous year and the net profit for the current year is Rs. 6.90 lakhs compared to profit of Rs.4.96 lakhs as recorded in the previous year.
3. CHANGE IN NATURE OF BUSINESS:
During the year under Report, there was no change in the nature of business of the Company.
4. TRANSFER TO RESERVES:
The Board of Directors does not propose to carry any amount to reserves.
Your directors have not recommended any dividend.
6. FIXED DEPOSITS:
The Company neither has accepted nor invited any deposit from the public, within the meaning of section 73 of the Companies, Act, 2013 and the Rules made thereunder.
7. SHARE CAPITAL
The Authorize Share Capital of the Company is Rs. 5,00,00,000/- and paid up share capital of the Company is Rs. 3,62,30,000/-.
8. MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANICAL POSITION AFTER THE END OF FINANCIAL YEAR:
There are no any material changes and commitments occurred after the end of the financial year, which is affecting the financial position of the Company.
9. THE NAMES OF COMPANIES WHICH HAVE BECOME OR CEASED TO BE ITS SUBSIDIARIES, JOINT VENTURES OR ASSOCIATE COMPANIES DURING THE YEAR:
There are no holding, subsidiaries, joint ventures or associate company of the Company. During the financial year ended on 31st March, 2019, none of the companies have become or ceased to be the subsidiaries, joint ventures or associate companies of the Company. The performance and financial position of subsidiaries, associates and joint ventures as per rule 8(1) of the Companies (Accounts) Rules, 2014 is not applicable.
There was no change in Directors during the year under review.
The board of Directors as on 31st March, 2019 is Mr. Vrajlal Vaghasia, Mr. Jiten Vaghasia, Mr. Girish Baldha, Mr. Kantibhai Devani, Mr. Vinesh Babariya and Mrs. Daxa Vaghasia.
11. ANNUAL RETURN:
The extract of Annual Return as prescribed under Section 92(3) of the Companies Act, 2013 read with Rule 12 of the Companies (Management and Administration) Rules, 2014, is set out in an annexure as Annexure I to this report.
12. MEETINGS OF BOARD:
During the financial year 2018-19, 05 (Five) Board Meetings were convened and held. The details of which are given in the Corporate Governance Report. The intervening gap between the Meetings was within the period prescribed under the Companies Act, 2013.
13. BOARD EVALUATION
The Board of Directors has carried out an annual evaluation of its own performance, Board Committees and individual directors based on inputs from the directors. The Board and the Nomination and Remuneration Committee reviewed the performance of the individual directors on the basis of the criteria such as the contribution of the individual director to the Board and committee meetings. Also, the Chairman was also evaluated on the key aspects of his role. In the separate meeting of independent directors, performance of non-independent directors, performance of the board as a whole and performance of the Chairman was evaluated. The same was discussed in the Board meeting that followed the meeting of the independent directors, at which the performance of the Board, its committee and individual director was also discussed.
14. INTERNAL FINANCIAL CONTROL SYSTEM AND THEIR ADEQUACY
The Company has adequate internal financial controls commensurate with the nature & size of business of the Company
15. DECLARATION BY INDEPENDENT DIRECTORS:
(Pursuant to Provisions of section 149(6) OF the Companies Act 2013)
All the Independent Directors of the Company do hereby declare that:
(1) All the Independent Directors of the Company are neither Managing Director, nor a Whole Time Director nor a Manager or a Nominee Director.
(2) All the Independent Directors in the opinion of the Board are persons of integrity and possesses relevant expertise and experience.
(3) Who are or were not a Promoter of the Company or its Holding or subsidiary or associate company.
(4) Who are or were not related to promoters or directors in the company, its holding, subsidiary or associate company.
(5) Who has or had no pecuniary relationship with the company, its holding, subsidiary or associate company or their promoters or directors, during the two immediately preceding financial years or during the current financial year.
(6) None of whose relatives has or had pecuniary relationship or transaction with the company, its holding, subsidiary, or associate company, or their promoters, or directors, amounting to two per cent or more of its gross turnover or total income or fifty lacs rupees or such higher amount as may be prescribed, whichever is lower, during the two immediately preceding financial years or during the current financial year,
(7) Who neither himself, nor any of his relatives,
(a) Holds or has held the position of a key managerial personnel or is or has been employee of the company or its holding, subsidiary or associate company in any of three financial years immediately preceding the financial year in which I\he is proposed to be appointed.
(b) Is or has been an employee or proprietor or a partner, in any of the three financial years immediately preceding the financial years in which he is proposed to be appointed of
(i) A firm of auditors or company secretaries in practice or cost auditors of the company or its holding, subsidiary or associate company; OR
(ii) Any legal or a consulting firm that has or had any transaction with the company, its holding, subsidiary or associate company amounting to ten per cent, or more of the gross turnover of such firm;
(iii) Holds together with his relatives two per cent, or more of the total voting power of the company; OR
(iv) Is a Chief Executive or director, by whatever name called, or any non-profit organization that receives twenty five per cent or more of its receipts from the Company, any of its promoters, directors or its holding, subsidiary or associate company or that holds two per cent or more of the total voting power of the company; OR
(v) Who possesses such other qualifications as may be prescribed?
16. DIRECTORS RESPONSIBILITY STATEMENT
In terms of section 134 Clause (C) of Sub-Section (3) of the Companies Act, 2013, in relation to financial statements for the year 2018-19, the Board of Directors state:
a) In the preparation of the annual accounts for the financial year ended 31st March 2019, as far as possible and to the extent, if any, accounting standards mentioned by the auditors in their report as not complied with, all other applicable accounting standards have been followed along with proper explanation relating to material departure;
b) The Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and profit and loss account of the Company for that period;
c) The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
d) The Directors have prepared the annual accounts on a going concern basis; and
e) The directors in the case of a listed company had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively.
f) The Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
17. DECLARATION BY BOARD AS PER REQUIREMENT OF SECTION 178 (1)
In compliance with Section 178 (1) of the Companies Act, 2013 the Board of Directors do hereby declare that:
a. The Company has proper constitution of the Board of Directors including Independent Directors.
b. The Company has constituted Nomination and Remuneration Committee, Stakeholders Relationship Committee, Audit Committee as per requirements of provisions of the Companies Act 2013.
c. The Company has the policy for selection and appointment of independent directors who are persons of reputation in the society, have adequate educational qualification, sufficient business experience and have integrity & loyalty towards their duties.
d. Company pays managerial remuneration to its Managing/Whole Time Director.
e. The Independent Directors are not paid sitting fee for attending Board and other committee meetings held by the Board from time to time.
f. The Company is not paying any commission on net profits to any directors.
18. AUDIT COMMITTEE
The Detail pertaining to composition of audit committee, its scope and attendance of members are included in the Corporate Governance Report, which forms part of this report.
19. STATUTORY AUDITORS:
M/s. Hardik Kadia & Co, Chartered Accountants have been appointed as Statutory Auditors of the Company for period of Five years from the conclusion of the 25th Annual General Meeting till the conclusion of the 29th Annual general Meeting of the Company, In accordance with the Companies Amendment Act, 2017, enforced on 7th May, 2018 by the Ministry of Corporate Affairs, the appointment of Statutory Auditors is not required to be ratified at every Annual General Meeting.
The Report given by the Auditors on the financial statement for the financial year ending on 31st March, 2019 of the Company is part of this Report. There are no qualifications or adverse remarks in the Auditors Report which require any clarification/explanation. The Notes on financial statements are self-explanatory, if any, and needs no further explanation.
20. SECRETARIAL AUDITORS:
Pursuant to the provisions of section 204 of the Companies Act, 2013 read with Rule 9 of the Companies (Appointment and Remuneration personnel) Rules, 2014, the Board of Directors appointed M/s. Thakrar & Associates, Company Secretaries in Practice to conduct Secretarial Audit of the Company for Financial Year 2018-19. The Report of the Secretarial Audit Report is set out in an annexure as Annexure II to this report.
In connection, with the auditors observation in the Secretarial Audit Report, the explanation / clarifications of the Board of Directors are as under:
With regard to observations of the Secretarial Auditor for non-compliances of various provisions of the Companies Act, 2013 and Listing Regulation, it is stated that the Company is not having major operations and the management of the Company is striving hard to operative effectively and taking steps to make necessary compliances under the Companies Act, 2013 and Listing Regulation.
EXPLAINATION TO THE SECRETARIAL AUDITORS REMARKS
The Directors submit their explanations to then various observations made by the Secretarial Auditors in their report for the year 2018-19. Para nos. of Auditors Report and reply are us under:
Basis for Qualified Opinion
|1. Non-Appointment of Company Secretary/CFO/Internal Auditor within time frame||Company Secretary is appointed.|
21. PARTICULARS OF EMPLOYEES:
The particulars of employees in accordance with the provisions of Section 197 of the Companies Act, 2013, read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is set out in an Annexure IV to this report.
The particulars of employees falling under the purview of Section 197 read with Rule 5(2) of The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are - NIL.
22. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:
Details of Loan, Guarantee and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the notes to the Financial Statements.
23. RELATED PARTY TRANSACTIONS:
All the transactions entered into with related parties as defined under the Companies Act, 2013 and the Listing Regulation, if any, during the year were on an arms length price basis and in the ordinary course of business. Such transactions have been approved by the Audit Committee. The Board of Directors of the Company has formulated the Policy on Related Party Transactions. During the Financial Year 2018-19, the Company did not have any material pecuniary relationship or transactions with Non-Executive Directors. In the preparation of financial statements, the Company has followed the Accounting Standards. The significant accounting policies which are applied have been set out in the Notes to Financial Statements. The Board has received disclosures from Key Managerial Personnel, relating to material, financial and commercial transactions where they and/or their relatives have personal interest. There are no materially significant related party transactions which have potential conflict with the interest of the Company at large.
24. CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION:
|1.||Conservation of Energy||NA|
|3.||Foreign Exchange Earning and Outgo||NIL|
25. CORPORATE GOVERNANCE:
The Board of Directors of the Company have evolved and adopted a Code of Conduct based on the principles of Corporate Governance and best management practices being followed globally. Compliance Report, in accordance with the Regulation 27 of the Listing Regulation with Stock Exchanges, on Corporate Governance forms part of the Annual Report. The Auditors Certificate on the compliance of Corporate Governance Code embodied in Listing Obligation and Disclosure Requirement Regulation, 2015 of the SEBI attached hereto and forms part of this Report.
26. MANAGEMENT DISCUSSION AND ANALYSIS:
Pursuant to Listing Obligation and Disclosure Requirement Regulation, 2015 of the SEBI, Management Discussion and Analysis Report are annexed herewith and form part of this Report.
27. CORPORATE SOCIAL RESPONSIBILITY(CSR) COMMITTEE:
The provisions for Corporate Social Responsibility Committee and Corporate Social Responsibility activities are not applicable to the Company.
28. ESTABLISHMENT OF VIGIL MECHANISM:
The Company promotes ethical behavior in all its business activities and has put in place a mechanism for reporting illegal or unethical behavior. The Company has adopted a Whistle-Blower Policy/ Vigil mechanism, which provides a formal mechanism for all employees of the Company to make protected disclosures to the Management about unethical behavior, actual or suspected fraud or violation of the Companys Code of Conduct. Disclosures reported are addressed in the manner and within the time frames prescribed in the Policy. During the year under review, no employee of the Company has been denied access to the Audit Committee.
29. BOARD COMMITTEE:
The Board of Directors of your Company had already constituted various Committees in compliance with the provisions of the Companies Act, 2013 and / or Listing Regulation viz. Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee. During the year under review, in compliance with the Listing Regulations.
All decisions pertaining to the constitution of Committees, appointment of members and fixing of terms of reference / role of the Committee are taken by the Board of Directors.
Details of the role and composition of these Committees, including the number of meetings held during the financial year and attendance at meetings, are provided in the Corporate Governance Section of the Annual Report.
30. INDEPENDENT DIRECTORS MEETING:
During the year under review, the Independent Directors of the Company met on 12th February, 2019, inter alia to discuss:
i) Evaluation of Performance of Non-Independent Directors and the Board of Directors of the Company as a whole.
ii) Evaluation of performance of the Chairman and / or Managing Director of the Company, taking into views of Executive and Non-executive Directors.
iii) Evaluation of the quality, content and timelines of flow of information between the Management and the Board that is necessary for the Board to effectively and reasonably perform its duties.
31. POLICY ON DIRECTORS APPOINTMENT AND REMUNERATION:
Your Companys policy on Directors appointment and remuneration and other matters provided in Section 178(3) of the Companies Act, 2013 is set out in an annexure as Annexure III to this report.
32. RISK MANAGEMENT POLICY:
The Board reviews the risks associated with the Company every year while considering the business plan. Considering the size of the Company and its activities, it is felt that the development and implementation of a Risk management policy is not relevant to the Company and in the opinion of the Board there are no risks which may threaten the existence of the Company.
33. SEXUAL HARASSMENT POLICY:
The Company has in place a Prevention of Sexual Harassment policy in line with the requirements of the Sexual Harassment of Women at the Workplace (Prevention, Prohibition and Redressal) Act, 2013. An Internal Complaints Committee has been set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual, temporary, trainees) are covered under this policy.
During the year 2018-19, no complaints were received by the Company related to sexual harassment.
Your Directors wish to place on record their sincere appreciation and gratitude for the valuable support and co-operation received from the Customers and Suppliers, various Financial Institutions, Banks, Government Authorities, Auditors and Shareholders during the year under review. Your Directors wish to place on record their deep sense of appreciation for the devoted services of the Executives, Staff and Workers of the Company for its success.
|ON BEHALF OF THE BOARD|
|For Narmada Macplast Drip Irrigation Systems Limited|
|VRAJLAL VAGHASIA||JITEN VAGHASIA|
|MANAGING DIRECTOR||WHOLE TIME DIRECTOR|
|DIN : 02442762||DIN - 02433557|
|Date: 05th September, 2019|